Type
Closure
Country
Hungary
Region
Dunantul; Nyugat-Dunantul; Zala
Location of affected unit(s)
Zalaegerszeg
Sector
Manufacturing
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.31 - Manufacture of electrical and electronic equipment for motor vehicles

201 - 224 jobs
Number of planned job losses
Job loss
Announcement Date
17 December 2019
Employment effect (start)
1 January 2020
Foreseen end date
30 April 2020

Description

The Hungarian subsidiary of German auto parts manufacturer Eckerle announced that it would dismiss more than 200 employees at its Zalaegerszeg plant. This means that nearly all (currently 225 workers) personnel at the plant will lose their jobs, a few could be relocated to other plants. The plant will entirely stop producing in early 2020.

The Eckerle group is a supplier of a variety of auto parts. The Zalaegerszeg production site is specialised on producing carbon brush systems for several parts, for example seat adjustment motors, safety belts, windscreen wiper motors. The decision about the dismissal came from the parent company, due to the steady decline of demand. The dismantling of the production lines has already began. Some of the production equipment will be shipped in two other Eckerle production sites: the Bóly plant in Hungary and the Cluj-Napoca plant in Romania.

The Ministry of Finance says that it will help the dismissed workers to find new jobs immediately, by organising job fairs, group consultations, and exploring job opportunities at nearby firms. The job search may prove relatively easy, since there are nearly 2,000 vacant jobs in the Zalaegerszeg district and some 3,500 vacant jobs in Zala county.


Sources

Citation

Eurofound (2019), Eckerle Automotive Zala, Closure in Hungary, factsheet number 99487, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/99487.